An Efficient Bit Allocation for an Arbitrary Set of Quantizers algorithm by Y. Shoham et al [3] has proven to be a very effective image compression method based on the mean square error (MSE) distortion measure. However, the MSB does not guarantee preservation of good perceptual qualities in the decoded image, especially at low bit rates. In this paper, we present the algorithm of combining the efficient MSE quantization and HVS (Human Visual System) motivated quantization. In our algorithm, perceptual weighting factors are introduced to the optimal bit allocation scheme. The perceptual weights for all subbands are obtained based on our modified HVS model. Our perceptually tunned codec has the same complexity as the original algorithm of [3] and results in a comparable or superior coding performance.
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